Exam 14: Regulation and Antitrust Policy in a Globalized Economy

Suppose technical change permits cable television companies to provide their services at lower rates.The share-the-gains,share-the-pains theory would predict that the regulators would

A firm that has taken advantage of economies of scale and expanded to become the only producer in the market is

-In the above figure,what would be the profit-maximizing output and price for this natural monopolist?

Enforcement of antitrust policy is the responsibility of

One of the elements of monopolization is

The antitrust legislation that forbids a company from selling goods on the condition that the purchaser must deal exclusively with that company is the

Social regulation is focused on all of the following EXCEPT

Which of the following statements can correctly be made about social regulation? I.Extensive social regulation may have an anticompetitive effect. II.The benefits of social regulation are easier to measure than are the costs of social regulation.

Using the figure as a guide,which of the following is FALSE with respect to profit maximization and the monopolist?

The costs of regulation

-Refer to the above figure.Regulators cannot force natural monopolies to operate in the long run at a loss.Therefore,they usually require the firms to charge a price equal to

Which of the following is a government response to asymmetric information?

Explain the capture hypothesis.

An unregulated natural monopolist will produce the quantity at which

Regulation of a natural monopoly that forces it to price and produce as if it were a competitive firm results in

If antitrust legislation is successful,then

When a regulator allows a monopolist to set its price equal to long-run average cost,the regulator is practicing

-Use the above figure.If this monopolist was not regulated,the profit-maximizing quantity and price would be

A difference between economic regulation and social regulation is that

This agency is responsible for preventing businesses from engaging in misleading advertising,unfair trade practices,and monopolistic actions,as well as for protecting consumer rights.